Title
Apolinario, Jr. y Llauder vs. People
Case
G.R. No. 242977
Decision Date
Oct 13, 2021
Jose Apolinario, Jr. convicted for approving unsecured loans to a bank director without board approval, violating DOSRI law, leading to Unitrust Bank's collapse.

Case Digest (G.R. No. 242977)
Expanded Legal Reasoning Model

Facts:

  • Parties and Charges
    • Jose Apolinario Jr. y Llauder (Apolinario), Winefredo T. Capilitan, Motohiko Hagisaka, and Elmer T. Magpantay, directors/officers of Unitrust Development Bank, were charged under Section 36 of Republic Act No. 8791 (General Banking Law) in relation to Section 36 of Republic Act No. 7653 (New Central Bank Act) for granting DOSRI loans without proper board approval or BSP notification.
    • Two informations: (a) P 1 million personal loan to Capilitan released December 26, 2001; (b) P 13 million loan to G. Cosmos Philippines, Inc. released December 27, 2001.
  • Factual Background
    • December 18–19, 2001 stockholders’ and board meetings elected Apolinario as Acting Chairman/President and amended by-laws on nationality; Magpantay, Quilatan, and Vasquez resigned.
    • Loan applications processed by Vasquez under Hagisaka’s direction; purported board resolutions (December 19 and December 26 minutes) approving loans were irregular or antedated; no BSP report made.
  • Procedural History
    • RTC (Makati, Branch 149) granted Magpantay’s motion to become state witness, tried merits, convicted Apolinario in Joint Resolution (Oct. 24, 2012), imposed fines of P 100,000 and P 200,000. Motion for reconsideration denied (Jan. 22, 2013).
    • Court of Appeals affirmed conviction and fines (Decision July 10, 2018; Resolution Oct. 25, 2018). Apolinario filed Rule 45 petition; SC directed OSG comment and resolved by Decision Oct. 13, 2021 (G.R. No. 242977).

Issues:

  • May this Court review the lower courts’ factual findings under Rule 45?
  • Were the elements of DOSRI violation proven beyond reasonable doubt, namely:
    • Petitioner’s status as director/officer;
    • His borrowing or incurring obligation (directly or as agent) in conspiracy;
    • Absence of written majority‐board approval entered in bank records and forwarded to BSP.

Ruling:

  • (Subscriber-Only)

Ratio:

  • (Subscriber-Only)

Doctrine:

  • (Subscriber-Only)

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